Glasgow City Core is the largest office sub-market outside of London. The city provides high quality, competitively-priced workspaces. Office rental costs remain competitive in comparison to many UK cities with property costs typically 71% lower than London (West End), 4.5% lower than Manchester and 8.5% lower than Edinburgh (Cushman & Wakefield UK Office Market Snapshot Q4 2018).
City core office market averages 2018
|12 Month sales volume||Prime yield||Prime rent (sq ft)||Vacancy rate|
|£455.7m (€523.16m)||5.25%||£30.00 (€34.44)||9.1%|
(CoStar – January 2019)
City centre prime office rents & yields – Q4 2018
|Location||Rent per sq ft |
|Rent per sq m |
|London (West End)||110.00||1,362.00||3.75|
(Cushman & Wakefield, UK Office Market Snapshot, 4th Quarter, 2018)
2018 was a record breaking year for Glasgow with over 1.4m sq ft (130,064 sq m) of city centre space leased. A number of significant pre-lets bolstered the market including Barclays’ 470,000 sq ft (43,664 sq m) purchase at Buchanan Wharf, a major pre-let of 187,000 sq ft (17,373 sq m) to HMRC at Atlantic Square and Clydesdale Bank’s 110,995 sq ft (10,312 sq m) pre-let at 177 Bothwell Street.
Grade A office pipeline
Work is underway on a number of developments across the city to deliver nearly 2 million sq ft of Grade A office space – with over 1 million sq ft coming online in 2020/21.
|Address||Size (sq ft)||Size (sq m)||Developer|
|Buchanan Wharf||470,000||43,664||Drum Property Group|
|177 Bothwell Street||313,000||29,079||HFD Property Group|
|Atlantic Square (Buildings 1 & 2)||260,000||24,155||BAM Properties, TCP Developments, LGIM Real Assets|
|One Central (Argyle Street)||280,000||26,012||Osborne + Co|
|33 Cadogan Street (The Grid)||275,000||25,548||M&G Real Estate|
|67 Sauchiehall Street||130,000||12,077||Formal Investments Ltd|
|64 Waterloo Street (The Still)||100,000||9,290||Whiteburn Projects Ltd|
|20 Cadogan Street (Cadworks)||95,500||8,872||FORE Partnership|
Alongside the Grade A office pipeline, Glasgow has seen a flurry of high quality refurbishments completed, including:
- The Garment Factory at Montrose Street (53,800 sq ft)
- 1 & 3 Atlantic Quay (106,200 sq ft)
- 123 St Vincent Street (60,700 sq ft)
- 310 St Vincent Street (78,941 sq ft)
- 58 Waterloo Street (31,068 sq ft)
- 191 West George Street (88,300 sq ft)
Investment activity in Glasgow has been very strong in 2018 with 49 sales transactions totaling £455.7 million, a year on year increase of 28%, with investors availing an impressive average yield of 5.7% (CoStar – Jan 2019).
In recent years, Glasgow has seen a significant increase in interest from investors in Asia, New Zealand, the Middle East, Europe and America. Glasgow’s appeal for international investors is due to a number of factors including reduced competition from UK Institutions, value for money, a weakened pound, and strong local market fundamentals.